GST or Goods and Services Tax registered companies in Singapore are required to fulfil a number of responsibilities. Some of the GST-registered businesses’ responsibilities are to charge and account for GST, complete GST filing on time, keep proper records, and display GST-inclusive product and service prices.
Read on to learn more about the responsibilities of a GST-registered company, regardless of whether you are mandatorily or voluntarily registered.
1. GST should be charged and accounted for on standard-rated supplies
If you are a GST-registered company, you will need to charge your customers GST at a rate of 7%. This amount will be included in your tax invoice.
Additionally, the sales of mobile phones, memory cards, or off-the-shelf software that exceed S$10,000 are subject to customer accounting, and you must provide a customer accounting invoice. GST is not charged to GST-registered customers under such circumstances. GST will instead be accounted for as output tax by your GST-registered customer.
2. Display prices with GST
GST must be included in all price displays, quotations, publications, advertisements or made to the public. GST-inclusive prices should be displayed at least as prominently as GST-exclusive prices when both prices are displayed.
A fine of up to $5,000 can be imposed if you do not comply with these requirements.
3. File GST returns and pay the tax due
File GST returns
The company is responsible for ensuring that GST returns are filed correctly and on time if the company is registered with IRAS. Within one month from the end of each accounting period, all GST returns must be submitted via the MyTax portal (mytax.iras.gov.sg). You will need to file a ‘NIL’ GST return if there is no GST transaction.
Late filing or non-filing
The IRAS will impose a S$200 late submission penalty once the GST filing deadline is missed. IRAS can impose a maximum penalty of S$10,000 for late submissions.
Taxes not paid by the due date will be subject to a 5% penalty. If taxes remain unpaid after 60 days from the due date of the prescribed accounting period (up to 50% of the outstanding tax), an additional penalty of 2% per month may be imposed.
4. Keep proper business & accounting records
Various business and accounting records must be maintained for at least five years. Maintaining them according to the required standards can be one of the company’s accountant’s responsibilities.
Some of the types of records to be kept are income records, purchase and business expense records, other documents to support GST declarations, statements and accounting schedules, an account of GST fillings and electronic records.
5. GST registration number should be included on tax invoices
Standard-rated supplies require tax invoices/customer accounting tax invoices. You can issue a simplified tax invoice if your total payable amount, including GST, does not exceed S$1,000. Invoices, receipts, and simplified tax invoices should display your GST Registration Number.
6. Notify IRAS of change
Another important responsibility to take note of as a GST-registered company is that you must notify the Comptroller of any business-related changes within 30 days of any change. Some of these changes include:
- Any updates on the GST mailing address
- Changes in partners or details of partners
- Changes in business ownership or constitution
- Changes in partnership agreements, including existing partners
7. Account for GST at the point of de-registration
GST on business-related assets held on the last day of registration must still be accounted for after your GST registration has been cancelled if:
- Previously, GST was claimed on the assets of the business; and
- There is a total market value of more than $10,000 for these business assets
You must comply with GST-registered company obligations, regardless of whether you are a mandatory or voluntary registrant. This process includes tax invoices, customer accounting, and filing GST on time. GST-registered businesses need to understand their responsibilities to fulfil them effectively. IRAS will impose consequences if you fail to meet the required obligations.
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*The above represents our views and opinions and does not necessarily reflect the position of any entities mentioned.